Shares in oil and gas services group Petrofac tumbled today after it slashed profit forecasts due to underperforming projects.

The group said it expects 2014 net profit to be 11 per cent down on last year amid a tough environment for companies that provide construction and engineering services to the oil industry.

Net profit could be as low as £343million this year, the company warned, having previously predicted little or no growth on last year’s figure of £384million.

Global player: Petrofac provides services for the oil & gas industry both onshore and offshore in seven key operating regions around the world.

Shares in Petrofac tumbled in morning trading, down by nearly 16 per cent or 210p to 1,178p, as markets digested the profit warning.

The company blamed ‘operational challenges’ in important projects. Setbacks included delays in the Greater Stella Area project in the North Sea and lower than expected production at the Ticleni project in Romania.